private lending usury laws & licensing

[Zach Morton]

Hi everyone, what are the usury limits for a private money lender in the state of Arizona? I read it was 10% in a few different places but that can't be right, that is so low. I also noticed you have to be licensed to be a private money lender in Arizona, what kind of license does this require and what's the best organization to go through?

[Jay Hinrichs]

Quote from @Zach Morton:

Hi @Doug Smith - thank you for the website! I just PM'd you

Do actually call the state agency that regulates mortgage lenders/brokers. many states have a mom and pop carve out on the license issue IE you can do a few a year and only have so many in your portfolio without the license.. I know Oregon has one.. But if you going into the business and are going to advertise and so on and so forth then you will want to get licensed.. Which is not all that easy if you have never been in the mortgage lending field.. the NMLS test is heavy to all the federal rules and laws and different acts.. For those that do it for a living its no sweat.. for me since I have only done HML my entire career it was a tough test I passed first time but just barely LOL..
As for usary any local lawyer that does any amount of real estate should get you that answer in a few minutes or off the top of their head.